Digital innovation and strong corporate governance have collided. These initiatives combined with a global recession, global pandemic, and enhanced emphasis on ESG (environmental, social and governance) awareness, have forced board directors to be better partners with management and up their game in corporate oversight.

Boardrooms are tasked with re-thinking the board member profile and committee structure in light of innovation and emerging transitional risks. 

With  seven years of for-profit public and private company board experience;  Two successful business exits commanding premiums to market as a CEO  and as Partner and Board Director; Four years of direct involvement in Big Data, Artificial Intelligence and Blockchain  technology integration initiatives; Twenty years of leadership  experience as CEO and other senior level positions; leading business transformation within a risk centric, highly regulated environment and with direct P&L oversight; I have never seen change  occur as fast as change is occurring today. 

This time in my life has forever changed how I think and how I problem solve for a pain point.

I understand the need for innovation, but I also appreciate the constant balancing act faced by management with regard to navigating a tough economic environment, changing consumer and business behavior, legacy systems and encumbered processes. Being  up to date and educated on these initiatives allow for thought  provoking  and robust discussions in the boardroom and with management.

October 11, 2020

By Christa Steele

Anyone that's a sports enthusiast or a current or former athlete can  appreciate the play that changes the momentum of the game. It's the play  that sparks the 10-0 run and the roar of the crowd. It's the play that  rallies the team and forces the timeout by the opposition to slow down  the pace of the game. 

As a former basketball player and swimmer who still considers myself  an athlete, I often use sports analogies in business. At 46 years old, I  am still highly competitive and make exercise part of my daily  lifestyle. I'm an avid runner, swimmer, cyclist, and yogi who believes  exercise is as much about mental health as it is about physical health.

I liken momentum to the human metabolism. A high metabolism gets  increasingly difficult to maintain with age; it's equally as hard to  maintain a constant state of momentum. Both metabolism and momentum  require continuous effort and have unforeseen challenges. As an example,  the metabolism must be constantly shocked to maintain as we get older.  This means changing up the workout and maintaining a good diet. Often  times, the biggest challenge to controlling the metabolism is our elbow  and what we put in our bodies. 

Momentum in business can be equally challenged by unforeseen events  and emerging trends, all while being stuck in the mindset of "this is  how it's always been done," lacking innovation and a current strategy,  and having a stagnant board or management team. 

One notable emerging trend is the emphasis on how companies are  responding to Environmental, Social, and Governance (ESG) matters. ESG  has broadened the definition of the "stakeholder" in business. Private  company key stakeholders, once viewed in large part as  the ownership, now include its employees, the environment, sources of  capital, customers, and the supply chain. A great example of a large  private company embracing ESG and its stakeholders is Recology,  headquartered in San Francisco. The 100-percent employee-owned company  employs 4,000 employees and operates in three Western states. Recology  issued its first sustainability report in 2019 with an emphasis on  stewardship to produce zero waste, manage human capital, and strengthen  corporate governance. The board has incorporated ESG into its governance  committee structure and is engaged with management in evolving company  reporting standards.  

Quick tips to help you get started or evolve your ESG strategy:

• Get educated about ESG; 
• Read the recently issued white paper by The World Economic Forum  called "Measuring Stakeholder Capitalism," and discuss its  recommendations with your board and management team; 
• Begin to formulate an ESG roadmap that details environmental, human capital, leadership, and governance impacts; 
• Determine what information you are already collect and track (quick wins);
• Determine key stakeholders (internal and external) and evaluate the level of engagement with each;
• Evaluate customers and suppliers who may require ESG reporting from  your company to continue to do business with you and what they will  likely require in the way of report validation;
• Determine your audience and what information should be publicly presented versus privately retained; 
• Research publicly available ESG-related information about your  competition (good places to start are with the Sustainability Accounting  Standards Board, the Global Reporting Initiative, and individual  company disclosures and reporting activity); 
• Identify best-in-class private companies and model their ESG practices. 

Lastly, recognize ESG as a game-changer for corporate America—public  and private companies alike. Ask yourself: What will cause the play that  changes the course of your game? Is your company a sure win and up by  20 points, or is your company the one that needs to call a timeout to  re-evaluate the play and turn the momentum in your favor?